Home Finance News China probes Evergrande founder’s potential transfer of assets abroad.

China probes Evergrande founder’s potential transfer of assets abroad.

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China probes Evergrande founder’s potential transfer of assets abroad.

China’s troubled property firm Evergrande has placed its Chairman, Hui Ka Yan, “under police control,” sparking concerns among investors and causing anxiety for the upcoming holiday week. The Wall Street Journal has reported that authorities are investigating whether Hui attempted to transfer assets offshore while the company was struggling to complete unfinished projects. This move comes as the property sector in China faces growing pressure to avoid a potential crisis similar to the 2008 financial crisis in the United States. Experts believe that significant government intervention may be necessary to stabilize the troubled property sector.

As Evergrande’s Chairman faces police investigation, investors are wary of the company’s financial stability. The concern arises from suspicions that Hui Ka Yan may have attempted to move assets abroad during the period when Evergrande was struggling to complete its projects. This development adds to the existing pressures on the property sector in China, which has prompted calls for decisive government action. Analysts are suggesting that losses should be allocated among developers, banks, and other stakeholders to restore stability. The situation has raised parallels with the US property-induced financial crisis in 2008, indicating the potential need for significant government intervention.

The investigation into Hui Ka Yan comes at a critical time for China’s property market. As the country enters a holiday week, the news that the Chairman of Evergrande has been placed under police control is unsettling for investors. The Wall Street Journal suggests that the government may need to step in, similar to the actions taken by the US in 2008, to prevent a crisis in the property sector. George Magnus, a former chief economist of UBS and an associate at Oxford University, believes that the government should take decisive steps to address the troubled property sector and allocate losses among relevant parties. With concerns mounting, the fate of Evergrande and the broader property market in China hangs in the balance.

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